As you probably know, the Galaxy S8 is more expensive to buy than its predecessor. According to a report by IHS Markit, the reason for the price hike is quite simple: it costs Samsung more money to make the Galaxy S8 than the S7.

The bill of materials (BOM) for the 64 GB version of the flagship device totals exactly $301.60. When the manufacturing expenses are added ($5.9), the total cost increases to $307.50. This means the actual cost of manufacturing a Galaxy S8 is $43.34 higher than...